Partnership with the private sector for entrepreneurship among disadvantaged young women and men: YBI and BYST

In most countries around the world, unemployment among young women and men is twice or more higher than among adults.  The ILO estimates that there are over 70 million young people in the world that are openly unemployed, not to speak of enormous underemployment faced by the majority of young people in developing countries.  It is a grave waste of human resource potential and could be a possible source of social problems.  Although starting a business is not the only solution for all the young people, it is a viable way of creating employment and providing livelihoods for many among themselves and for others.

The programmes affiliated to the Youth Business International (YBI), an international NGO created by the Prince of Wales International Business Leaders Forum, presents a unique model that meets special needs of young women and men who generally lack experience, capital and network that are necessary to start businesses.  The YBI targets disadvantaged young people, whose definition depends on the country programme.

Bharatiya Yuva Shakti Trust (BYST), a not-for-profit NGO launched in Delhi, India, in April 1991, is an example of such programmes.  BYST operates in 5 regions and has supported 570 entrepreneurs who have created over 3,000 jobs.  The businesses range from handicrafts to high-tech electronics and computers.   Many of them are fast-growth companies with 5% of the entrepreneurs becoming rupee millionaires.

After going through a rigorous selection process conducted by a panel of businesspersons, BYST provides (i) start-up capital in the form of small loans, (ii) periodic mentoring, (iii) peer-to-peer networking and (iv) marketing exposure.  A unique feature of BYST, and the YBI programmes in general, is their partnership with the private sector.  They tap into human resources of the private business sector; that is, successful businesspersons provide pro bono service in the selection process and as mentors for young women and men.

Sources:  Youth Business International, “Bridging the gap between unemployment and self-employment for disadvantaged youth” (draft); Nuim Chowdhury, “Principles for youth livelihoods programmes in South Asia: qualitative assessment in an open learning framework”